Government may do away with the Jharkhand State Beverage Corporation Ltd (JSBCL) after incurring an estimated revenue loss of over Rs.8000 crore since the formation of the corporation in 2013, officials from the Excise Department said on Wednesday.
The Department calculated an annual growth rate of 18.3 per cent in sale of liquor by volume from year 2009-10 to 2012-13. As per the estimated growth rate, the State expected to earn revenue of `15,632 crore from year 2013-14 to year 2019-20, a report prepared by Excise officis stated. The Government, however, earned revenue worth Rs.7219.79 crore during this period, which was `8,412 crore less than the estimated revenue, the report further stated.
“The revenue generated was low compared to the estimated revenue as per the average growth rate,” said state excise secretary Vinay Choubey. “A decision will be taken in the best interest of the State after weighing all pros and cons,” he added.
JSBCL monitors supply of liquor to retail outlets and ensures that the demand and supply ratio is maintained in the State while the state achieves its target for Excise revenue.
Several bigger States like Tamil Nadu and West Bengal rely on beverage corporation for liquor trade.
The report highlighting the estimated revenue loss since the formation of the JSBCL has been forwarded to Excise Minister Jagarnath Mahto. “Necessary changes will be incorporated in the liquor wholesale model in the State if the current model is causing revenue loss,” Mahto said.